Of course it depends on your own goals, motivation, and the thing that gets you out of bed. If you care about your product and your audience then I think whilst it might sound promising to sell to a bigger company, there are chances your product and audience will be both gone. There are also chances of being able to reach even wider audience with an even better product.

I can think of a couple of examples like Picnik and Posterous. I'm not sure what those guys wanted out of it, and I hope they are happy with the decision. For me personally they were both two great products that dissolved into nothing... I'm sure there are plenty of examples to the contrary (some people mentioned other successful google product that really became huge).